New Roof on Rehab value?

Question

Will installing a new roof give Lots more value when flipping a home? Im very new so apologies if it’s a silly question. Thank you . P.s. Im In Chicago suburbs, idk if that matters.

Jonathan Klemm · Answer

@Omar Diaz - No question is silly if you don't know the answer.

Just curious which Chicago Suburb?

The easy answer is it depends.  But most likely it won't add much value unless the roof is just in horrible condition and needs to be replaced.....because more than likely that would come up on the inspection and they'd want some type of credit.

If you have a deal in mind I am always open to partnering with newer investors.  Feel free to reach out.

Evan Polaski · Answer

@Omar Diaz, cosmetic upgrades get houses under contract, and mechanicals and systems kill deals.

As Tanner noted, I do not think of roofs as having any return on investment, or very, very minimal.  But, if you don't do it, as noted and it is in poor condition or coming towards end of useful life, it will come up on inspection, which could likely prompt an inspection concession or the buyer walks.

Beyond just the cost, there is the perception.  Roofs are easy inspection items.  As such, if you have a gorgeous house that everything looks new and great, then the buyer hears that the roof is showing age, it will bring the whole renovation into question.  The buyer could very well start thinking about what else you skipped on.

Omar Diaz · Answer

@Bob Stevens appreciate the feedback. I’m only 21 y/o so yes i agree with you- I’m no where near ready but you have to start somewhere. What do you mean by flipping them the contract? What’s the best way to connect with other investors? Thanks

John Warren · Answer

@Omar Diaz I think this mostly depends on how old the roof is... on my first home in the Chicago suburbs I tried to not replace the roof before the sale and that was a huge mistake. When I speak with clients about this, I always talk about how the roof presents. Is it showing signs of aging (granulation coming off, weathered looking, shingles curling) or is it in good shape but older? If it is in good shape, then leave it. If it is showing signs of being an issue then any buyer will create issues with this later on.

As a listing agent, I can tell you that the number one question is always "how old is the roof". The roof is one of the biggest expenses a home owner will have, and they normally don't get "investor pricing" on a roof.

Bob S. · Answer

@Omar Diaz you need to connect with an investor doing deals, you are  not anywhere ready. Flip them your contract, learn then apply what you learn, BTW OF COURSE it will add value

Good Luck

Tanner Sherman · Answer

This is a tricky question- while the roof itself will not necessarily directly help your sale price, NOT doing the roof could negatively impact your sale price. Take into consideration the curb appeal, functionality, severity of roof damage and age of roof when deciding whether or not it needs to be replaced. If the roof functions fine, doesn't appear torn and ugly and still has 3-5+ years of life left, then you should be fine to not replace it. Bert bet would be to get a roofer to check it out and pay them to write you a letter you can include in your listing explaining the life remaining.

New Roof on Rehab value?

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